Traders,
Happy Easter – I hope you’re all enjoying the long weekend with family and friends.
Some constructive action last week, with a ton of relative strength shining through, along with small-caps, mid-caps, and the equal-weighted S&P 500 (RSP) all closing out the week firmly above their 200-day SMA. Whilst the overall market remains below a 200-day SMA, I will still be playing defense, and many of the previously discussed adjustments remain in effect.
So, with that in mind, here are some standout names on watch for the upcoming week:
Continuation in Space Stocks: I won’t go over the overarching theme and thesis here, as I have already covered them in detail in prior IA meetings. Fantastic relative strength lately in the sector, with the sector ETF breaking out on Thursday.
The sector ETF is the first option here. If UFO, having broken out on Thursday, can dip and hold near $48, I’d look to enter a long position against the 10-day SMA for a swing trade. I missed the entry on Thursday, so I am now looking for a continuation entry.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
I’ll also be watching RKLB closely for signs of stabilization above its 10 and 20-day SMA and relative strength. If RKLB can firm up above its 10 and 20-day, I’ll look to enter a swing long against the 5-day potentially.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
PL is the standout leader in the sector. I wouldn’t enter at these prices for a swing because its price has already extended from its 100- and 200-day SMA. Therefore, if it were to pull back and hold near $34, I might look for a continuation long on the dip, but I wouldn’t look for anything beyond 2-3 days of continuation. Whereas, with UFO and RKLB, I’d be looking to maintain a core for much longer.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
Market Momentum Short Ideas: Now, in the event that the market fails early next week – we fail to reclaim the 20-day SMA and confirm a lower high in this developing downtrend – here are a couple of high-beta names I’d look at for intraday momentum shorts.
GOOGL: If GOOGL fails to reclaim and hold its 10 and 20-day, it would confirm a short-term lower high. If it displays relative weakness to the market / its peers, I like the R:R here for a fade back toward its 5-day. Not looking for a multi-day trade here at all – this would just be an intraday momentum short if the lower high and relative weakness confirm. If the market stabilizes, and GOOGL reclaims last week’s high – I’d be open to a swing long. Remaining open-minded and flexible in this environment is vital.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
TSLA: Notable relative weakness on Thursday. If news comes out / the market fails on Monday, and TSLA is holding near Thursday’s lows, I’d look for intraday momentum to scalp on the short side.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
What about if the market firms up and holds above Thursday’s close / reclaims the 20-day SMA?
Here are some names that have caught my eye for their relative strength and technical positioning:
SNDK: Building out a fresh base and range. I wouldn’t be surprised to see outperformance to the upside as soon as/if the market regains key SMAs.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
NKTR: Clear and obvious relative strength and outperformance. Similar to SNDK, I wouldn’t be surprised to see a notable breakout if the market stabilizes.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
GLW: A leading name within one of the leading sectors so far YTD. If dips continue to be bought, the 10-day SMA might serve as the stop and guide a multi-day breakout if the market holds steady.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
Get the SMB Swing Trading Evaluation Template Here!